Innovation strategy, quality and performance in the service sector

Iris María Vélez Osorio

doi:10.22451/3002.nbr2018.vol4.1.10023

Authors

Iris María Vélez Osorio Universidad de Valencia, Fundación Universitaria Católica Lumen Gentium

DOI:

https://doi.org/10.22451/3002.nbr2018.vol4.1.10023

Keywords:

Innovation Strategy, Innovation, Organizational Performance, Service Industry, Quality Management.

Abstract

STRUCTURED ABSTRACT

1) Objective: The present research aims to identify how the innovative strategy affects the organizational performance and quality in processes of service sector organizations in Colombia, taking into account their production process improvements, and organizational methods.

2) Method: It was used the Survey of Development and Technological Innovation (EDIT) created by the Administrative National Department of Statistics DANE, collecting 19 subsectors and a total of 5.848 companies.

3) Theoretical Framework: This research is settled in the competitive strategy, resource based view of the firm, and innovation theory.

4) Results: Finding that the innovative strategy benefits the improvement in the quality of processes and this in turn becomes the engine of organizational performance.

5) Conclusions: The Colombian services sector represents an important sector for economic growth, the innovative strategy becomes the determining factor to create value in the processes and offer quality services that promote sector organizations as the best in each area. However, for the smaller organizations in each service sector, higher levels of investment are required that allow them to make improvements in production methods and continuous organizational methods; investment in scientific, technological and innovation activities must have all sources of financing that translate into substantial changes in services.

6) Contributions: This research allows to understand for the service sector and their particular context the importance to have an innovation strategy with scarce resources to improve performance and quality. The innovation strategy affects both cases, the organizational performance is better in the organizations of the service sector, which means that their sales levels increase every time they generate substantial improvements in methods of providing services, distribution, delivery or logistic system, which we have called production methods, and second, in the quality of processes of these companies, improving routines within the organization, internal improvements called improvements in organizational methods are generated improvements in the quality of each process, this effect for organizations is translated into certifications that impact on the final customer who acquires the service.

Key Words: Innovation Strategy, Innovation, Organizational Performance, Service Industry, Quality Management.

JEL: M1, M10, L8

REGULAR ABSTRACT:

The present research aims to identify how the innovative strategy affects the organizational performance and quality in processes of service sector organizations in Colombia, taking into account their production process improvements, and organizational methods. It was used the Survey of Development and Technological Innovation (EDIT) created by the Administrative National Department of Statistics DANE, collecting 19 subsectors and a total of 5.848 companies. Finding that the innovation strategy benefits the improvement in the quality of processes and this in turn, becomes the engine of organizational performance. The Colombian services sector represents an important sector for economic growth, the innovative strategy becomes the determining factor to create value in the processes and offer quality services that promote sector organizations as the best in each area. However, for the smaller organizations in each service sector, higher levels of investment are required that allow them to make improvements in production methods and continuous organizational methods; investment in scientific, technological and innovation activities must have all sources of financing that translate into substantial changes in services.

Key Words: Innovation Strategy, Innovation, Organizational Performance, Service Industry, Quality Management.

JEL: M1, M10, L8

Downloads

Download data is not yet available.

Author Biography

Iris María Vélez Osorio, Universidad de Valencia, Fundación Universitaria Católica Lumen Gentium

Professor Velez has a Business degree (2006) and a Master degree in Organizations (2009) both at Universidad Del Valle in Colombia, a Master in Administration from Tulane University, United States. Actually, she is studying her doctoral program at Universidad de Valencia in Spain.

She has been working as a professor for the last 9 years, also, been a consultant and researcher, had been publish different articles and conference papers about management, strategy, education, social enterprise, corporate social responsibility and open innovation models.

Master degree in Organizations, Doctoral Student at Universidad de Valencia, Spain.
ORCID: 0000 0003 2532 3335

References

Aldrich, H. (1999). Organizations evolving. Sage.

Alegre-Vidal, J., Lapiedra-Alcamı́, R., & Chiva-Gómez, R. (2004). Linking operations strategy and product innovation: an empirical study of Spanish ceramic tile producers. Research Policy, 33(5), 829-839.

Amit, R., & Schoemaker, P. J. H. (1993). Activos estratégicos y alquiler de organización. Gestión Estratégica Journal, 14(1), 33-46.

Anderson, C. R., & Paine, F. T. (1975). Managerial perceptions and strategic behavior. Academy of Management Journal, 18(4), 811-823.

Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of management, 17(1), 99-120.

Bianchi, C., Bovaird, T., & Loeffler, E. (2017). Applying a Dynamic Performance Management Framework to Wicked Issues: How Coproduction Helps to Transform Young People’s Services in Surrey County Council, UK. International Journal of Public Administration, 1-14.

Camisón, C. (2006). Estrategia y competitividad de la empresa española: un balance del periodo 1984-2004. Claves de la Economía Mundial, 6, 88-99.

Chandler, A. (1962). Strategy and structure: chapters in the history of the industrial enterprise.

Cimoli, M., Carlos Ferraz, J., & Primi, A. (2016). Science, technology and innovation policies in global open economies: reflections from Latin America and the Caribbean.

de Freitas Saccol, A. L., Serafim, A. L., Hecktheuer, L. H., Medeiros, L. B., & Silva Jr, E. A. D. (2016). Food Safety in Feeding Services: A Requirement in Brazil. Critical reviews in food science and nutrition, 56(8), 1363-1369.

Drucker, P. F. (1999). Knowledge-worker productivity: The biggest challenge. California management review, 41(2), 79-94.

Encuesta de Desarrollo e Innovación Tecnológica EDIT. Departamento Administrativo Nacional de Estadística (DANE). 2015.

Flynn, B. B. (1994). The relationship between quality management practices, infrastructure and fast product innovation. Benchmarking for Quality Management & Technology, 1(1), 48-64.

Gutman, G. E., & Lavarello, P. (2007). Biotecnología y desarrollo. Avances de la agrobiotecnología en Argentina y Brasil. Economía teoría y práctica, (27).

Han, J. K., Kim, N., & Srivastava, R. K. (1998). Market orientation and organizational performance: is innovation a missing link?. The Journal of marketing, 30-45.

Hannan, M. T., & Freeman, J. (1977). The population ecology of organizations. American journal of sociology, 82(5), 929-964.

Harrigan, K. R. (1988). Joint ventures and competitive strategy. Strategic management journal, 9(2), 141-158.

Helfat, C. E., & Peteraf, M. A. (2003). The dynamic resource‐based view: Capability lifecycles. Strategic management journal, 24(10), 997-1010.

Hrebiniak, L. G., & Joyce, W. F. (1985). Organizational adaptation: Strategic choice and environmental determinism. Administrative science quarterly, 336-349.

Hull, C. E., & Rothenberg, S. (2008). Firm performance: The interactions of corporate social performance with innovation and industry differentiation. Strategic Management Journal, 29(7), 781-789.

Jacobs, C. D., & Heracleous, L. T. (2005). Answers for questions to come: reflective dialogue as an enabler of strategic innovation. Journal of Organizational change management, 18(4), 338-352.

Markides, C. (1997). Strategic innovation. Sloan management review, 38(3).

Meller, P., & Gana, J. (2016). Perspectives on Latin American Technological Innovation. In Innovation and Inclusion in Latin America (pp. 89-114). Palgrave Macmillan US.

Statistical Office of the European Communities. (1997). Oslo Manual: Proposed Guidelines for Collecting and Interpreting Technological Innovation Data. OECD Publishing.

Pfeffer, J., & Salancik, G. R. (2003). The external control of organizations: A resource dependence perspective. Stanford University Press.

Pitt, M., & Clarke, K. (1999). Competing on competence: A knowledge perspective on the management of strategic innovation. Technology Analysis & Strategic Management, 11(3), 301-316.

Porter, M. E. (1979). The structure within industries and companies' performance. The review of economics and statistics, 214-227.

Porter, M. E. (1980). Industry structure and competitive strategy: Keys to profitability. Financial Analysts Journal, 30-41.

Smith, K. G. GRIMM, eM, Y GANNON, MJ (1992): Dynamics of competitive Strategy.

Stieglitz, N., & Heine, K. (2007). Innovations and the role of complementarities in a strategic theory of the firm. Strategic Management Journal, 28(1), 1-15.

Teece, D. J., Pisano, G., & Shuen, A. (1997). Dynamic capabilities and strategic management. Strategic management journal, 509-533.

Warren, K. (2002). Competitive strategy dynamics. Chichester: Wiley.

Wernerfelt, B. (1984). A resource‐based view of the firm. Strategic management journal, 5(2), 171-180.